Truss announced as new PM, US midterms could shake up markets, German factory orders fall hinting at further downside ahead of ECB meeting.
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FX Rates
September 6, 2022Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.
Source: BloombergGBP/USD 1.1585 GBP/EUR 1.1613 EUR/USD 0.9977 USD/CAD 1.3106 EUR/CHF 0.9769 EUR/SEK 10.6996 EUR/NOK 9.9010 EUR/DKK 7.4370 USD/ILS 3.3988 AUD/USD 0.6791 NZD/USD 0.6092 USD/SGD 1.4037 USD/JPY 141.53 USD/CNH 6.9542 USD/INR 79.8925 EUR/ILS 3.3912 GBP/ILS 3.9360 USD/ZAR 17.1069
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GBP
Liz Truss was formally announced as the new British prime minister, succeeding Boris Johnson. Sterling rebounded from lows of 1.1440 following the announcement from officials close to Liz Truss stating that she plans to take drastic action to intervene in energy markets. There has been no exact confirmation of her policy.
EURThe euro has advanced gains through this morning, despite weaker German factory orders. Factory order fell by 1.1% despite a forecast of 0.5%. Germany’s Composite PMI currently sits at a 27-month low of 46.9, which could signal more downside for the euro ahead of Thursdays ECB meeting.
EURUSD builds on gains made yesterday through the morning just below parity.
USDUS midterm elections could have an interesting impact on markets should they deliver a gridlock in Washington. This would amplify the importance on monetary policy, as all arms of government would find it increasingly difficult to impact the economy with fiscal policy.
ASIA/PACIFICThe RBA hiked its key rate by 50 bps to 2.35%, the highest since 2015. AUDUSD jumped higher to 0.6830, however has since retreated to 0.6792.
China sets the yuan’s reference rate 6.9096 per dollar today, a stronger than expected fixing.
ILSUSDILS has held onto gains achieved through yesterday, trading close to 3.4. It has however dropped away from yesterday's highs at 3.42.
Data & EventsUK Construction PMI
German Construction PMI
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